WILL ALL RESIGN

Dominion, Volume 24, Issue 225, 19 June 1931, Page 10

WILL ALL RESIGN

Hospital Board’s Stand MINISTER DEFIED Trouble Over 10 Per Cent. Cut By Telegraph—Press Association. Greymouth, June 18. The Grey Hospital Board recently decided to effect economies in view of the reduction in the Government’s subsidy, but not to reduce staff salaries by 10 per cent. The Health Department, however, refused to sanction the estimates unless the board also cut wares and salaries. The board then decided unanimously that it would rather resign than comply with the department’s direction. At to-night’s meeting a letter from the Minister of Health, the Hon. A. J. Stallworthy, statedjthat the Government had decided that the ratepayers should share in the reduction to be made in the board's expenditure, and that the levy on local authorities be limited. Therefore, exercising the powers under section 46 (3) of the Hospitals Act, the Minister required the board to amend this year’s estimates by reducing those for maintenance by £lOlO, and by reducing the levies to £8331. The board, however, in accordance with its previous stand, passed unanimously the following resolution: —“That as the requisition of the Minister of Health to amend the estimates is solely a mandate that the board reduce salaries and wages, the Minister be advised that as the board declines to reduce salaries and wages it Is not prepared to amend its estimates, and if the payment of the subsidy in consequence of such refusal is withheld, each board member hereby undertakes to hand to the secretary of the board his or her resignation.” The chairman, Mr. J. W. Hannan, pointed out that the cost per occupied bed, including all salaries and charges, was here no higher than hospitals which the Minister quoted as having reduced salaries; also that as probationers here formed 40 per cent:, of the whole hospital staff the rate of pay of the trained staff of Grey Hospital must be lower than the average at the other hospitals mentioned. For the department to determine the levy was an usurpation of the board’s functions.